UK: Transport for London has invited requests to participate in the procurement of the next London Overground operating concessionaire.
The TfL-managed inner-suburban services running on the main line rail network are currently operated by Arriva Rail London under a contract running to May 3 2026. As the London Overground concession is awarded by TfL rather than by the Department for Transport, it is not included in the government’s plans to end the tendering of train operating contracts.
The next contract is designated the London Overground 3 concession. TfL says passenger numbers have already recovered to pre-pandemic levels, and it expects to see continued growth throughout the next contractual period.
Price is not the only award criterion, and TfL’s five key objectives for the ‘already high performing and efficient railway’ are:
- to ensure customers and staff are safe and secure;
- deliver fair working conditions, be inclusive and represent the communities served;
- collaborate with industry partners to maintain high customer satisfaction, while building trust and caring for customers’ needs today and in the future;
- achieving the best value for money for TfL by maximising revenue and controlling costs without compromising quality;
- improving environmental and sustainability outcomes to support TfL’s goal of net zero carbon.
The contract is expected to run for an initial period of eight years, with an option for TfL to extend the period by up to approximately 24 months (26 railway reporting periods) and a separate extension for up to about seven months (seven periods).
The operator will be remunerated through a specified fee package of performance incentives, which may include either or both of performance bonuses for increased performance or deductions for below target performance.
Requests to participate must be submitted by January 7 2025.
- The RMT trade union has criticised TfL’s decision to award the next Elizabeth Line concession to GTS Rail Operations, saying the Mayor of London Sadiq Khan is creating an ‘island of privatisation’ as much of the UK’s railway is transitioning into public ownership. General Secretary Mick Lynch said the union believes ’the mayor must act on the opportunity to bring the Elizabeth Line and London Overground under direct public control as soon as possible’.
